The U.S. housing recovery continues as home prices grew at their highest annual growth rate since 2006, according to the S&P/Case-Shiller survey. Nick Timiraos has details. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... really ... good news on the ... recall ... was all arrived in the housing market is welcome this is going gangbusters not to say it's come although it back ... but it's become some of the way that makes cameras to above ... case Shiller numbers this morning ... little stronger than people are expecting may ... yet know I think anybody who's been following the housing sector for the last few months will be surprised by ... of by what we saw today ... case Shiller showed a nine point three percent increase from year ago ... on ... to put that in perspective so you'll go ... home prices were down forty five percent from the peak hit in May or June two thousandsix ... now we're down twenty nine percent from the peak so ... it's it's still way down from the peak but we've come we've come a fair amount just in the last year and that has a lot to do with the fact that ... there are fewer foreclosed properties on the market ... for fuel homes carry on the market inventories ... for ten year lows were in a twenty year lows if you ... add in new homes were we really haven't built in many new homes over the past for five years ... on ... and so you have more people chasing fewer homes of three half percent mortgage ... and home prices going up now you have consumers say hey wait a minute I want to get in on the bottom ... everybody wants to buy the bottom but nobody wants to sell the bottom so you're also seeing people what to put their homes up there ... and ... the National Association of Realtors frankly is getting worried ... what they're saying because there are enough homes for people to buy ... Realtors make money of course not want home prices overnight or assembled by the alien more subtle actions in of people I was in the homes for sale ... then it ... has nothing to buy if there's nothing to buy ... you a potential source anyway I know I can sell my house now which made us into a year ago ... the price of the one I can sell my house phenomena find anything other than by ... so you really do have kind of a word marker right now both saw lots of the market that are doing well in the regional Phoenix is one of them right when we're in the ... first of all twenty cities were up three or for the second straight month that hasn't happened since two thousand five minutes is up twenty three percent ... Phoenix has become the poster child for ... investors piling into the market ... these houses are cheap ... housing stock is pretty aam ... you can read his columns out while saying it's the same thing is happening there are up more than seventeen percent ... synthesis go of this or con Valley ... the tech boom home prices up nineteen percent L a is doing well ... Sacramento San Diego although West market testing the biggest gains ... on ... the New York is probably the softest market of the twenty cities there are about two percent ... and if you look at you know Phoenix and biggest fell more than fifty per Danzig AG's asset other common Autonomy layover and often extremely low levels of ... New York was down nearly twenty five percent at half the decline of those Western markets and so ... they're not bouncing up is as ... you know sporadically their pride ... and he added that he taught us so the changing dynamics of the mass attention right the sun just that the prices are rising prices of the level but it's it's who's flying who cellulose into different more good ... than it was five years ago or even a year of running a red ergo ... people were afraid to buy because if I will apply by now is the isthe Bell unit lor new ... year from now no one wants to catch a falling knife ... now you have the ... time of positive feedback loop going more people are afraid or ... not they're going to have a home falls in value but they're afraid they're going to get left out of the next round of prices going up ... on and it's ... been a big obit on five houses and they lose all five bids and then say oh my God this is actually in us another they're getting more aggressive ... on